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USTaxAdvising
USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1237
Experience:  US Taxation specialist.
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How can I deduct home office usage partnership return? Do I

Customer Question

How can I deduct home office usage for a partnership return? Do I rent the home office to the partnership and enter as rental income and then unreimbursed expense?
Submitted: 1 year ago.
Category: Tax
Expert:  USTaxAdvising replied 1 year ago.

Hello,

Home office expense would be recorded by the partner of the partnership, not the partnership itself.

If the partnership rented office space then it would deduct it as rental expense. But if it was not rented, and a partner used his/her home for business use then that respective partner may be eligible to deduct the business use of home on his/her individual income tax return.

I hope that provides the direction you were looking for. Please let me know if something is not clear and I will get back to you as soon as I can.

Best regards,

Customer: replied 1 year ago.
The partnership was just formed and he used his own home for that year. So I need to fill out a 8829 on his personal taxes? When I read the instructions for that form it says a partner cannot use this.
Expert:  USTaxAdvising replied 1 year ago.

Correct the partner would compute his/her business use of home deduction and enter it as "UPE" on Schedule E. see page E-9 of the the following instructions - http://www.irs.gov/pub/irs-pdf/i1040se.pdf